Deleon Inc. is preparing its annual budgets for the year ending December 31, 2017. Accounting assistants furnish the data shown below.

Product

JB 50

Product

JB 60

Sales budget:Anticipated volume in units400,000200,000Unit selling price$20$25Production budget:Desired ending finished goods units30,00015,000Beginning finished goods units25,00010,000Direct materials budget:Direct materials per unit (pounds)23Desired ending direct materials pounds30,00010,000Beginning direct materials pounds40,00015,000Cost per pound$3$4Direct labor budget:Direct labor time per unit0.40.6Direct labor rate per hour$12$12Budgeted income statement:Total unit cost$13$20

An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $560,000for product JB 50 and $360,000for product JB 60, and administrative expenses of $540,000for product JB 50 and $340,000for product JB 60. Interest expense is $150,000 (not allocated to products). Income taxes are expected to be 30%.